Market Monitor Construction Poland 2018

Market Monitor

  • Polen
  • Bouw

13 feb 2018

While the market is still growing, increasing costs for construction materials and transport weigh on the performance of construction businesses.

  • Construction turnover increased in 2017 compared to 2016, and value added growth rose 4.7%. In 2018 2.9% a growth rate is expected. However, the average annual margin in the industry decreased from 28,6% in 2016 to 26,8% in 2017. It is expected that businesses margins will decrease further in the coming months due to a significant price increase for subcontractors, transport and construction materials.
  • While competition in the Polish construction market remains high, due to high demand no price wars were observed in 2017. The average revenue-weighted debt ratio in the industry was 78% in 2017, while the level of debt in the construction materials segment is much lower. The willingness of banks to lend to the construction industry is at the same level as with other Polish industries. The risk that funding costs adversely affect businesses financial condition or operational results is limited.      
  • Payment duration in the industry is 60-90 days on average (in some cases up to 120 days), and the level of non-payment notifications is high, with no major decrease expected in 2018. In 2018 it is expected that construction insolvencies will increase by more than 10%, as the construction market has expanded and the number of active businesses is growing.
  • Our current underwriting approach is neutral to restrictive. While the market is still growing, especially in the infrastructure segment, increasing costs (construction materials, transport, price increase for specialist work) weigh on the performance of construction businesses.
Disclaimer

De informatie in dit document wordt uitsluitend ter algemene informatie verstrekt en hieraan kunnen geen rechten worden ontleend. De toepasselijke voorwaarden zijn te vinden in de polis of de betreffende product- of dienstverleningsovereenkomst. Niets in dit document mag worden opgevat als strekkende tot enigerlei recht, verplichting, verantwoordelijkheid of advies aan de zijde van Atradius, en derhalve ook niet tot enigerlei verplichting tot het uitvoeren van due diligence op afnemers of ten behoeve van uzelf. Indien Atradius due diligence op een afnemer uitvoert, gebeurt dit ten behoeve van haar eigen acceptatiedoeleinden en niet ten behoeve van de verzekeringsnemer of enige andere persoon. Daarnaast zijn noch Atradius noch enige aan haar verbonden ondernemingen, deelnemingen of dochterondernemingen aansprakelijk voor welke directe, indirecte, speciale, incidentele of gevolgschade dan ook voortvloeiende uit het gebruik van de in dit document opgenomen informatie.